Quantchabot has detected a new Bear Call Spread trade opportunity for E.L.F. BEAUTY INC (ELF) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ELF was recently trading at $68.33 and has an implied volatility of 73.20% for this period. Based on an analysis of the options available for ELF expiring on 16-May-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $50.39-$68.89 at expiration. In this scenario, the average linear return for the trade would be 17.28%.
Big -7.71% Change: After closing the last trading session at $74.04, E.L.F. BEAUTY INC opened today at $73.15 and has reached a low of $67.77.
Trade approach: A movement as big as -7.71% is a significantly bearish indicator, so this trade is designed to be profitable if ELF maintains its current direction and does not revert back to pricing on the bullish side of $68.33 on 16-May-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if E.L.F. BEAUTY INC closes at or below $69.09 on 16-May-2025. Based on our risk-neutral analysis, there is a 50.37% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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